THE INVESTMENT APPROACH OF CALVIN TAN
NYLEX (4944) A Surprising Discovery! Nylex Ethanol Factory is Bigger Than Hexza Ethanol Factory, Calvin Tan Research
calvintaneng
Publish date: Wed, 13 May 2020, 11:19 AM
calvintaneng
0 1,796
Hi Guys,
I have An Investment Approach I which I would like to all.
I have An Investment Approach I which I would like to all.
Hi guys,
Calvin used to whatspp Friends & Investors about Stocks of Interest from time to time.
But once awhile I get feed back from friends about their discovery
One Big Time Investor whataspped me about Hexza when it was around 70 sen. He asked me to consider as he saw potential in Hexza. I already knew Hexza produced alcoholic beverage so I told him nothing special except for its dividends and didn't take another look
Whoa! to my surprise Hexza suddenly gone Limit Up one day to cross Rm1.00 & closed at the High of Rm1.21
Puzzled, I went to do a further research as to why it spiked up so much. Then I found out
Hexza's ethanol which was converted into alcohlic drinks can also be used as Sanitizer to fight the Covid 19 virus
Why is it so?
See the answer
HEXZA CORPORATION BERHAD (8705-K) From Hexza latest Quarterly Report
Interim Report on Consolidated Results for the Second Quarter ended 31 December 2019 Page 10 of 13 HEXZA B3.
Prospects
As prevailing industry conditions remain challenging, our resins segment might see a downturn in both revenue and profits. However, with the current outbreak of a new coronavirus strain, the demand for our ethanol products has increased substantially. Our ethanol segment’s financial results is expected to benefit significantly which should help offset any potential downturn from the resins segment.
Hexza mentioned "Ethanol"
Ha! Ethanol is the food alcohol which Hexca converts into alcoholic beverages
Now it is used in fighting Covid 19
A further check revealed that Medical Doctors will only recommend Sanitizer with high alcoholic content from 70% to 90% to be effective against corona virus = the rest of the so-called sanitizers without high alcoholic contents are quite ineffective and therefore useless against Covid 19
So Hexza has a secret weapon = "Ethanol" alcohol
And even after Hexza jumped limit up to Rm1.21 it still rise and rise to a new record of Rm1.41
So I missed Hexza, careless me.
Aha!
One day another friend whataspped me. He said Nylex also got Ethanol. Nylex? A fimiliar name which i bought in year 2014 when Crude oil crashed. You see, Nylex being a polymer product manufacturer needs Crude oil for its products. So in year 2014 when Crude oil crashed to USD27 I instinctively bought Nylex as its Feed cost will be cheap and will save cost & also increased profit.
And i was right. Nylex doubled in price within 2 years when I sold and didn't look back
Now the idea of "ethanol?
Did I missed something. So I told my friend to call Nylex office. They confirmed under Nylex is Fernpro which produces ethanol.
And for some months they closed the factory to do upgrade. Just in time. By Mid 2019 the factory is up & running again
And my, the capacity is 11 Acres. The factory is located in Chuping, Perlis where Malaysia's Biggest Sugar Cane Plantation is located. In contrast Hexza's factory in Perak is only 10 acres
SO THE TAIKO OF ETHANOL IS NOT HEXZA BUT NYLEX
After finging the truth I whatsapped friends to buy Nylex
Surprise again. One whatspp friend called Sydney told me he knows Nylex Bosses. So I got a better understanding of the Company
At this time of writing I a still waiting for the Photos of their Fernpro Factory in Chuping, Perlis
Meanwhile I am happy to share this with all i3 forum fraternity
After buying Comfort at 88.5 sen, Supermax at Rm1,73, Luxchem at 47 sen, Adventa at 57 sen, Esceramic at 32 sen, Mtag at 39 sen, PPHB at 69 sen & Prolexus at 57.5 sen Calvin is very happy to bring you Nylex at 68.5 sen
I missed Hexza at 70 sen
Now Nylex is here at only 68.5 sen
How high and how far Nylex will go up due to its Ethanol like Hexza is yet to be seen
But from its Annual Report
Nylex used to have a revenue of Rm29 Millions and a profit of Rm2.8 millions
Let's see how much its earnings will be reflected in share price later
See
SUMMARY OF KEY FINANCIAL INFORMATION
|
|
INDIVIDUAL PERIOD
|
CUMULATIVE PERIOD
|
||||
|
CURRENT YEAR QUARTER
|
PRECEDING YEAR
CORRESPONDING QUARTER |
CURRENT YEAR TO DATE
|
PRECEDING YEAR
CORRESPONDING PERIOD |
||
|
30 Nov 2019
|
30 Nov 2018
|
30 Nov 2019
|
30 Nov 2018
|
||
|
$$'000
|
$$'000
|
$$'000
|
$$'000
|
||
| 1 | Revenue |
315,718
|
434,364
|
630,288
|
854,765
|
| 2 | Profit/(loss) before tax |
742
|
5,102
|
1,237
|
10,497
|
| 3 | Profit/(loss) for the period |
-258
|
1,443
|
-1,899
|
4,777
|
| 4 | Profit/(loss) attributable to ordinary equity holders of the parent |
270
|
209
|
-855
|
3,291
|
| 5 | Basic earnings/(loss) per share (Subunit) |
0.15
|
0.11
|
-0.48
|
1.76
|
| 6 | Proposed/Declared dividend per share (Subunit) |
0.00
|
0.00
|
0.00
|
0.00
|
|
AS AT END OF CURRENT QUARTER
|
AS AT PRECEDING FINANCIAL YEAR END
|
||||
| 7 | Net assets per share attributable to ordinary equity holders of the parent ($$) |
1.8700
|
1.8300
|
||
Definition of Subunit:
In a currency system, there is usually a main unit (base) and subunit that is a fraction amount of the main unit.
Example for the subunit as follows:
| Country | Base Unit | Subunit |
| Malaysia | Ringgit | Sen |
| United States | Dollar | Cent |
| United Kingdom | Pound | Pence |
How much profit if Nylex is restored to its former earnings?
The formula is
Rm2.8 millions / Rm270,000 x 0.15
= 10.37 sen X 0.15 = 1.55 sen
So annualised is 1.55 x 4 = 6.2 sen
Now latest closing price of Nylex is 68.5 sen
So P/E = 68.5 / 6.2
= 11.04
So here we are Nylex if everything in a simple calculation has a P/E of only 11.04
Of course like Luxchem only 20% of its chemicals are for Gloves so about 20% of its productions are in Ethanol
All Gloves P/E are now going to the stratosphere so can we attribute a P/E 30 for Nylex?
If so then the formula is
30 divides by 11.04 x 68.5 sen = Rm1.86
Is Nylex worth Rm1.86 a share with Ethanol in hot demand?
Of course we need to discount it by 30% as it is only 20% into ethanol
So Rm1.86 x.07 = Rm1.30
Is Nylex worth Rm1.30?
Yet to be seen
Since Comfort and many others have already broken P/E 30 and Harta broken P/e 55 it is very possible that Nylex will chase up Hexza at Rm1.41 (after all Nylex's factory is bigger than Hexza's)
So Nylex now 68.5 sen
A simple target price is Rm1.30
Note: TARGET PRICE HAS BEEN UNGRADED TO RM1.50 THEN RM1.80 & RM2.00
Why is it so
Glove, Face mask & Isolation gown are for protection
Only Ethanol is for attack against Virus as they put as sanitizer on your hands, disinfect hospital, office, shops, and even the entire City & Towns
So 3 (Gloves, face masks & isolation gowns) are just defensive
ETHANOL is THE ONLY OFFENSIVE WEAPON AGAINST COVID 19
Best regards
Calvin Tan Research
Please buy or sell after doing your own due diligence. In doubt please consult your Remisier or Fund Manager
CHUPING SUGAR CANE PLANTATION (BIGGEST IN MALAYSIA)
Sugar cane is converted to Ethanol
This year is 2020
Perect Eye Sight like NYLEX.
Nylex will RUN and EXCEED Hexza share price.
Note: Sugar cane is 7 times better than corn in the manufacture of Ethanol
Wrte Up by Rakuten on Nylex latest news
The other major asset being its 48.95% stake in Nylex Bhd which is in the industrial chemical business that has hit a sweet spot amidst the Covid-19 pandemic. It is experiencing surge in demand for their ethanol production, an active ingredient in sanitisers. Its business of manufacturing hand sanitisers and hygiene and sanitisation services is the new normal in the wake of gradual opening of most business post CMCO. Ancom’s foray into sanitiser production is complementary to their existing business as the margins are fairly lucrative with gross margins ranging between 25-40%.
THESE 2 PHOTOS OF NYLEX FACTORY IN CHUPING PERLIS
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Discussions
1 person likes this. Showing 18 of 18 comments
Great champion Sifu Dr Neoh Soon Kean of dynquest was in Top 30 of Nylex with 1.1 million Nylex shares in year 2015 to 2016 when Crude oil crashed to USD and exploded up the profits of Nylex
In 2 years Nylex share price jumped from 50 sen to over RM1.00 when Dr Neoh exited at Year end of 2017 for huge gains
Dr. NEOH LEARNT FROM SIFU PETER LYNCH HOW TO BUY CYCLICAL NYLEX DUE TO OIL PRICE CRASH AND HIGH PROFITS
WHEN OIL RISE AGAIN DR NEOH SOLD
SO NOW THAT CRUDE OIL IS USD 25 EVEN LOWER THAN YEAR 2014 WHEN CRUDE FELL NEAR USD30
THIS TIME THERE IS DOUBLE BOOSTER FOR BOTH DIVISION
1. POLYMER AND NITRILE FOR GLOVES GOT HUGE SAVINGS FROM CHEAP OIL FEED COST
2.THE POWERFUL BOOSTER FROM ETHANOL
MORE SO BECAUSE NYLEX GONE INTO A MAJOR EXPANSION
THIS IS IT
LUCK IS PREPARATION MEETING OPPORTINITY
PETROL CHEMICAL MEETING THE WINDFALL GAIN FROM DIRT CHEAP OIL
ETHANOL MEETING THE GREAT ROARING DEMAND FROM SANITIZER WORLD WIDE!!!
2020-05-13 12:14
ETHANOL is THE ONLY OFFENSIVE WEAPON AGAINST COVID 19
For World Wars the sale of Weapons increased by multi folds
So in the Coronavirus War World Wide The Weapon of Choice is Ethanol
SANITIZER WITH ETHANOL CONTENT OVER 70% DESTROYS COVID 19 IN SECONDS!!
Every Government of Planet Earth Needs Ethanol
And the Best Crop for Ethanol is Sugar Cane
Unlike Grapes or Beet Roots which can only grow once a year in their 4 seasons
Sugar Canes in the Equatorial Tropics Can Grow All Year Round
And Sugar cane will grow in Tropical Rain Area like Malaysia where there is abundant rainfall
So Chuping Being the Biggest Sugar Cane Region of Perlis, Malaysia is the most ideal place for FernPro factory
The Very Best of the Best for Nylex
See
http://itourism.com.my/itourism/web/malaysia-attractions-travel-hotspot-details.php?hid=512
2020-05-13 13:27
U need remember this important issue; Hexza is definitely more efficient than nylex, they pays dividend of 5 sen per share for many years but nylex do not pay anything bcos cannot afford to pay mah....!!
If u play play punting can buy nylex....not invest like u buy hexza for investment mah.....!!
If u make monies can start lari on nylex, if it start falling quickly cabut kuat kuat loh.....!!
2020-05-13 13:33
Very good
Nylex has touched limit up 30% on first wave
Long way more to go up
Nylex/ancom bosses are very bullish
For those who missed now is the last chance to get onboard Nylex the super Ethanol Stock
Target price of Rm1.50 is in sight
If market gone mad then Rm2.00 to Rm2.50 possible
But it will not go up in a straight line
So buy and hold
Any pull back or weakness just add more
2020-05-13 15:03
Twin engines for Nylex
1. Lower feedcost from oil price crash will boost polymer margin
The rasor thin profit of lean years will now turn into fat years of higher profit
2. Renewed Ethanol factory in Chuping Perlis resume full production
With the CATALYST FROM NEW FOUND DEMAND FOR SANITIZER THE PROFITS OF NYLEX WILL SKYROCKET UPWARD
SO DON'T MISS THIS SUPERBULL STOCK
NYLEX GO GO GO!!!
2020-05-13 15:08
When Oil Price Tanked Great Champion Sifu Dr Neoh Soon Kean of Dynaquet bought into Nylex and became Top 30 Holders with 1.1 Million Shares of Nylex
See from Year 2015 AR of Nylex
Top 30 Shareholders of NYLEX
12. Dynaquest Sdn Berhad 1,100,000
2020-05-13 15:40
From Year 2016 Annual Report of Nylex
Again Grand Champion Sifu Dr Neoh Soon Kean DYNAQUEST Still in Top 12 Holders of Nylex
See
12. Dynaquest Sdn Berhad.......... No. of shares held 1,100,000.......Percentage 0.57%
This shows that Grand Champion Sifu Dr Neoh Chun Chun Timing
Dr Neoh bought Nylex when Crude Oil Prices collapsed due to US shale Oil challenge Arab Oil and caused it to crash from USD 70 to USD27
DR NEOH MADE MORE THAN 100% FROM NYLEX AFTER IT ROSE FROM 50 SEN TO OVER RM1.00
DR NEOH MENTIONED SIFU PETER LYNCH WHO TAUGHT ABOUT BUYING CYCLICAL STOCKS
NYLEX WAS HIS WINNING TROPHY
NOW WE ARE BACK TO ANOTHER CYCLICAL OPPORTUNITY AS CRUDE OIL COLLAPSED LIKE NEVER BEFORE
PLUS ANOTHER BIG OOOOOMPH FACTOR FOR NYLEX
THE EMERGENCE OF COVID 19 WORLD WIDE WHICH WILL SPUR DEMAND FOR ETHANOL
AND NYLEX HAS THE CHUPING FERMPRO ETHANOL FACTORY
LOTS AND LOTS OF SUGAR CANE FOR ETHANOL
HOW COULD CALVIN MISSED?
GO LOAD IT UP WHILE BULL STILL YOUNG
2020-05-13 15:41
calvintaneng Twin engines for Nylex
1. Lower feedcost from oil price crash will boost polymer margin
The rasor thin profit of lean years will now turn into fat years of higher profit
2. Renewed Ethanol factory in Chuping Perlis resume full production
With the CATALYST FROM NEW FOUND DEMAND FOR SANITIZER THE PROFITS OF NYLEX WILL SKYROCKET UPWARD
SO DON'T MISS THIS SUPERBULL STOCK
NYLEX GO GO GO!!!
13/05/2020 3:08 PM
2020-05-13 15:43
Now that gloves are in overbought territory they must take rest before going higher
Stay in the safety of nylex as it is a very young bull full of potential to rise up
Sanitizer is not an option but a life and death necessity to fight covid 19
The only weapon that can kill covid is ethanol
AND nylex is into the product chun chun
2020-05-13 16:25
Hand sanitizer and cleaning products are in extremely high demand around the world due to the COVID-19 pandemic, and that means the need for key components such as isopropyl alcohol is also reaching new heights. Hand sanitizers use either ethanol or isopropyl alcohol as the primary ingredient, and both are becoming increasingly hard to obtain. Chemical companies are reconfiguring plants and opening new ones in order to increase supply, but they’re still having a hard time keeping up with demand. Adding to the challenge are factors such as regulations, production capacity, tariffs, and government restrictions. Both governments and manufacturers will need to find ways to make this essential ingredient more readily available.
https://blog.technavio.com/blog/hand-sanitizer-demand-impacting-isopropyl-alcohol
2020-05-13 22:40
Very Chun Chun
After glove bull run
Will be face mask bull run
Now is sanitizer bull run. As companies start opening up cleaning and disinfecting premises with sanitizer will be in force
Fierce demand for sanitizer will be very good for Nylex as it has an immense access to the sugar cane plantation of Chuping which is the raw material for ethanol
2020-05-14 01:33
Sifu calvintaneng is correct:
After glove bull run,
Will be face mask bull run
Now is sanitizer bull run
I think face mask biz n its material suppliers will be so BIG in the world.
Mask profit margin is unthinkably HIGH.
2020-05-14 03:19
Note the progress
It begins with Gloves
Then it moves to Face Masks
Now is Sanitizers
More and more companies are venturing into Sanitizers
So good for Nylex as It has Ethanol for Sanitizers
And good for Ancom because it synergizes with Nylex like hand in glove making Sanitisers thru Entopest
See
https://www.theedgemarkets.com/article/local-cosmetics-brand-pivots-ha..
2020-05-14 15:57
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Huat huat 2020
HEXZA which is smaller size can goes to 1.44...
NYLEX has manufacturing for GLOVE as well...
Well noted from MARCH Manufacturing. The only positive segment is Petroleum, Chemical, Rubber and Plastic...
Well Nylex has plastic, chemical and sanitizers
NYLEX is distributor for ancom as well
2020-05-13 11:42